School delivering the free early education entitlement for two year olds
Frequently Asked Questions & Case Studies
Q: What is the entitlement?
A: 570 hours free early education from September 2013 (15 hours if taken over 38 weeks
– can be taken over more weeks). Schools can decide on their own delivery models so,
for instance, can offer term-time only or can decide to stretch the offer over up to 52
weeks. Similarly, how the 15 (or fewer hours) are offered is also a decision for the school.
There are various models in operation e.g. 5 x 3 hours sessions, 3 x 5 hour sessions, 3 x
4 hours over 48 weeks and 2 x 7.5 hours.
Q: Who is entitled?
A: There are two phases of entitlement – September 2013 and September 2014
From September 2014 (and including the 2013 entitlement)
Two year olds, whose parents are in receipt of one of the following benefits, are entitled to
a free early education place:

Universal Credit

Income support

Income based Jobseekers Allowance

Income related Employment and Support Allowance (if you are unable to work due to
illness or disability)

The guaranteed element of State Pension Credit

Child Tax Credit and earn £16,190 or less per year

Working Tax Credits (WTC) with a household income of less than £16,190 as
assessed by HMRC

Support under Part VI of the Immigration and Asylum Act 1999 (in essense, asylum
seekers or failed asylum seekers)
In addition, places are free for children who:

are looked after by their local authority

have a current statement of special educational needs or an Education, Health and
Care plan

have left care through special guardianship or an adoption or residence order

are in receipt of the Disability Living Allowance.
Q: What funding is available?
A: The Government set aside £525m to local authorities for 2013-14 and this is a mixture
of capital, trajectory (development) and statutory place funding. The total for 2014-15 is
£755 million. The amount received by each local authority is determined by the number of
target children in their area. The funding is in the Direct Schools Grant (DSG) and is not
ring-fenced. Its expenditure is controlled by the local schools forum and, therefore, how
much money is deployed locally for expenditure on the two year old offer is at their
behest.
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Q: How long will funding last and how is it worked out?
A: Funding is currently guaranteed for 2013-14 and 2014-15. This has been an initiative
of both the previous and the current governments and the ongoing commitment to funding
as part of the early intervention strategy has been reiterated on many occasions. Currently
the funding is on the basis of target figures provided by the Department for Education to
local authorities. It is intended that the funding from 2015 will be participation based. The
local hourly rate is set by the schools forum.
Q: Who can deliver the offer?
A: Registered providers that follow the Early Years Foundation Stage (EYFS) are able to
deliver funded places to eligible two year olds. At present, Outstanding and Good
providers should be treated as a priority for places and, if there are insufficient places at
settings of this quality, then provision that Requires Improvement provision can deliver the
offer. The Government has announced its intentions to legislate in order, from 2015, only
good and outstanding providers will be eligible for delivery. New provision that is not, as
yet, rated by Ofsted can also be funded for the offer.
Q: What is the statutory basis for a school delivering the offer?
A: There are various statutory options for schools

Making Changes to a Maintained Mainstream School using the procedures
established by The Education and Inspections Act 2006 (EIA 2006) and further
regulations by altering the lower age limit1; in this case the children become registered
pupils of the school

Use the ‘community facilities’ powers under Section 27 of the Education Act 2002 to
develop separate provision, managed and delivered from within existing school
governance structures

Leasing school premises to an outside provider to deliver childcare and early
education within the school’s grounds

Commissioning an outside provider to deliver childcare and early education within the
school’s premises

Commissioning an outside provider to deliver childcare and early education on a site
near the school
In all cases, two year old provision will have to be registered separately with Ofsted as an
‘early years provider’2.
Section 27(1) of the Education Act 2002 enables schools to provide a wide range of
community facilities, including childcare/early education. The limits on the powers of the
governing body under Section 27(1) have recently been reduced and they are now as
follows.
Section 28(1) identifies the specific limitations and restrictions on the power as;

Any limitations or restrictions contained in school’s own instruments of government;
and
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It is now possible to alter the upper or lower age limit by up to two years (except for adding or removing a
sixth form) without following a formal statutory process: (Schools Organisation Guidance January 2014)
2 The Government proposes to remove the requirement for separate early years registration for schools but
this will not come into force until sometime in 2015; in the meantime they are consulting on another proposal
to instate a separate Ofsted grading for early years provision in schools and, depending on the results of the
consultation, it is planned to enforce this from September 2014
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
Any limitations or restrictions in a local authority Scheme for Financing Schools (The
Fair Funding Framework) made under section 48 of the School Standards and
Framework Act 1998.
If they making changes to the schools arrangements, maintained schools will still need to
meet the requirements to which public bodies are subject. The schools must they are
nevertheless required to adhere to the usual principles of public law: they must act
rationally, take into account all relevant considerations and follow a fair procedure. They
must also meet their duty under the Equality Act 2010 and have due regard to potential
equality impact of proposed changes to policies, procedures and practices.
Academies
Academy trusts can apply to the Education Funding Agency (EFA) to make changes to
their lower age limit and, subject to a decision by the Secretary of State, make changes to
their Articles of Association and Funding Agreement.3
The Funding Agreement will not permit any of the academy’s general annual grant to be
used on nursery provision. DfE require the nursery to be separately funded and accounted
for.
The Academies Act 2010 restricts the ability of Academies to charge for education. If an
Academy Trust intends to provide and charge parents directly for nursery provision, it will
need the specific power to charge within its Funding Agreement.
An Academy Trust is able to run a nursery on Academy premises by;

Direct provision, as a charitable activity within the Academy’s objects (which in
practice are broadly similar to the Education Act 2002 in relation to maintained
schools);

a wholly-owned subsidiary of the Academy Trust - either as a charitable activity within
the Academy Trust’s objects, or as a trading activity for profit (again the powers of the
charitable trust as they exist in the trust’s articles are sufficient for this purpose); or

contracting out to an independent provider (which may or may not be a charity; and in
which a Trustee/Governor may have an interest)
Q: What are the space, other physical requirements
A: There are a number of requirements in the EYFS Framework
The premises and equipment must be organised in a way that meets the needs of
children. In registered provision, providers must meet the following indoor space
requirements.

Two year olds: 2.5 m2 per child.

Children aged three to five years: 2.3 m2 per child.
These calculations should be based on the net or useable areas of the rooms used by the
children, not including storage areas, thoroughfares, dedicated staff areas, cloakrooms,
utility rooms, kitchens and toilets.
The provider must ensure that, so far as is reasonable, the facilities, equipment and
access to the premises are suitable for children with disabilities. Providers must provide
access to an outdoor play area or, if that is not possible, ensure that outdoor activities are
planned and taken on a daily basis (unless circumstances make this inappropriate, for
example unsafe weather conditions).
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Provision must be made (space or partitioned area) for children who wish to relax, play
quietly or sleep, equipped with appropriate furniture. Sleeping children must be frequently
checked.
Providers must ensure there is an adequate number of toilets and hand basins available
(usually one toilet and one hand basin for every ten children over the age of two). There
should usually be separate toilet facilities for adults. Providers must ensure there are
suitable hygienic changing facilities for changing any children who are in nappies and
providers should ensure that an adequate supply of clean bedding, towels, spare clothes
and any other necessary items is always available.
Providers must also ensure that there is an area where staff may talk to parents and/or
carers confidentially, as well as an area in group settings for staff to take breaks away
from areas being used by children.
Providers must only release children into the care of individuals who have been notified to
the provider by the parent, and must ensure that children do not leave the premises
unsupervised. Providers must take all reasonable steps to prevent unauthorised persons
entering the premises, and have an agreed procedure for checking the identity of visitors.
Providers must carry public liability insurance.
Q: What staff qualifications and other requirements do I need to consider?
A: There are a variety of matters to take into account with regard to staff qualifications and
other requirements.
Staff qualifications, training, support and skills
Providers must ensure that all staff receive induction training to help them understand
their roles and responsibilities. Induction training must include information about
emergency evacuation procedures, safeguarding, child protection, the provider’s equality
policy, and health and safety issues.
Providers must put appropriate arrangements in place for the supervision of staff who
have contact with children and families.
Supervision should provide opportunities for staff to:

discuss any issues – particularly concerning children’s development or well-being;

identify solutions to address issues as they arise; and

receive coaching to improve their personal effectiveness.
In group settings, the manager must hold at least a full and relevant level 3 qualification
and at least half of all other staff must hold at least a full and relevant level 2 qualification.
The manager should have at least two years’ experience of working in an early years
setting, or have at least two years’ other suitable experience. The provider must ensure
there is a named deputy who, in their judgement, is capable and qualified to take charge
in the manager’s absence.
Providers should ensure that regular staff appraisals are carried out to identify any training
needs, and secure opportunities for continued professional development for staff.
Providers should support their staff to improve their qualification levels wherever possible.
For staff without a relevant qualification, providers should consider supporting them to
obtain a relevant level 2 qualification.
At least one person who has a current paediatric first aid certificate must be on the
premises at all times when children are present, and must accompany children on outings.
First aid training must be local authority approved and be relevant for workers caring for
young children. Childminders, and any assistant who might be in sole charge of the
children for any period of time, must hold a current paediatric first aid certificate.
Providers must ensure that staff have sufficient understanding and use of English to
ensure the well-being of children in their care. For example, settings must be in a position
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to keep records in English, to liaise with other agencies in English, to summon emergency
help, and to understand instructions such as those for the safety of medicines or food
hygiene.
The qualifications criteria will change with the introduction from September 2014 Early
Years Teacher Status (EYTS) & Early Years Educators (EYE). EYEs will require level 3
or equivalent from September 2014 and hold GCSE English and Maths at Grade C or
above. There will, however, be no immediate impact of these changes since it will take
two years to obtain the qualification.
Key person
Each child must be assigned a key person. Their role is to help ensure that every child’s
care is tailored to meet their individual needs (in accordance with paragraph 1.11), to help
the child become familiar with the setting, offer a settled relationship for the child and build
a relationship with their parents.
Staff: child ratios
Staffing arrangements must meet the needs of all children and ensure their safety.
Providers must ensure that children are adequately supervised and decide how to deploy
staff to ensure children’s needs are met. Providers must inform parents and/or carers
about staff deployment, and, when relevant and practical, aim to involve them in these
decisions. Children must usually be within sight and hearing of staff and always within
sight or hearing.
Only those aged 17 or over may be included in ratios (and staff under 17 should be
supervised at all times). Students on long term placements and volunteers (aged 17 or
over) may be included if the provider is satisfied that they are competent and responsible.
As from Septemebr 2014, staff working as apprentices in early education (aged 16 or
over) may be included in the ratios if the provider is satisfied that they are competent and
responsible.
The ratio and qualification requirements below apply to the total number of staff available
to work directly with children. For group settings providing overnight care, the relevant
ratios continue to apply and at least one member of staff must be awake at all times.
Exceptionally, and where the quality of care and safety and security of children is
maintained, exceptions to the ratios may be made.
For children aged two:

there must be at least one member of staff for every four children;

at least one member of staff must hold a full and relevant level 3 qualification; and

at least half of all other staff must hold a full and relevant level 2 qualification.
Q: What do I need to take into account in respect of registering with Ofsted?
A: There are various aspects of Ofsted registration that need to be taken into account and
there are proposals to change the requirements on schools4
Registration on the Early Years Register is currently required where schools directly
provide the Early Years Foundation Stage for children aged under three.
If a school has a contract with or has commissioned another provider to use part of the
school premises or nearby to provide a separate, discrete service then registration is
required for the other provider.
The registration system for childcare on domestic and non-domestic premises uses the
concept of a ‘registered person’. ‘Person’ used in this context means both individuals and
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The Government proposes to remove the requirement for separate early years registration for schools but
this will not come into force until sometime in 2015; in the meantime they are consulting on another proposal
to instate a separate Ofsted grading for early years provision in schools and, depending on the results of the
consultation, it is planned to enforce this from September 2014
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organisations. The registered person has overall responsibility for the provision of
childcare and is legally responsible for ensuring compliance with the requirements of the
Early Years Register or Childcare Register, regulations and any conditions of registration
that imposed by Ofsted.
Where an organisation does not have childcare as its main purpose, the application
should come the most senior person in the organisation with delegated, clearly identifiable
and direct responsibility for managing, planning and monitoring the childcare (known as
the nominated person). The detail is contained in Appendix 1.
It is important to plan the various steps in registration ahead. The registered person must
appoint a manager who they need to decide is suitable to work with or be in regular
contact with children and on their capacity to act as a manager of registered provision. It
is important to ensure that capital works are carried out in time to interview and appoint a
suitable person.
There must also be a nominated person to represent the organisation in its dealings with
us. Normally this should be a committee member, partner or director. This person will be
interviewed during the registration process and will receive all legal documents and
correspondence.
Where the prime purpose of an organisation is not childcare, the nominated person is the
most senior person with responsibility for childcare.
The nominated person must have a full and thorough understanding of their role in
relation to the registered childcare provision. If they are involved in the recruitment and
continuing employment of the manager of the setting they will also need to be clear about
their responsibilities in relation to the manager.
Before an organisation can be registered it will have to demonstrate to Ofsted that:

every person looking after children on the premises where you provide childcare is
suitable to look after children in the early years age group

every person living or working on the premises where you provide childcare is suitable
to be in regular contact with children in the early years age group

the premises, including any equipment, are suitable for looking after children in the
early years age group

it meets or will meet all the safeguarding and welfare and learning and development
requirements of the Early Years Foundation Stage, all regulations and any conditions
of registration that Ofsted imposes.
A window of about 25 weeks should be left to get everything in place for registration.
Registration is currently reported as taking 4-6 weeks.
Q: What training might I need to secure for my staff?
A: It is advisable to train staff on early learning tools and approaches that are specific to
the developmental stage of two year olds. The local authority should be able to help
and advise on this and will most likely provide appropriate training.
Q: Can the two year olds be mixed with the three and four year olds in one room?
A: Practitioners take different views on this issue in terms of the best environment for two
year olds but there is nothing to prevent the children being care for in the same room.
(Please see the answer to EYFS space and physical requirements above). There are
many examples across the country of mixed provision working well and producing
good results.
Q: How will the Ofsted early years inspection be conducted if we are already subject to a
whole school inspection?
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A: The Ofsted Fact Sheet Registering Schools Based Provision states:
“We will inspect the pre-school separately to the school and it will have its own
report. The reception class will be inspected as part of the school inspection.
Wherever possible, the two inspections will happen together.”
Schools who have been inspected report that the inspectors spend the majority of
their time observing the two year olds and their key staff in the course of the
inspection.
Q: Are the two year olds entitled to Free School Meals (FSM)?
If a school follows the route of lowering the age group to accommodate two year olds
and the child accesses the offer before and after the lunch period, they are entitled to
FSM since they become registered pupils of the school. This is not the case if the
community facilities power has been used.
Q: What are the key things I need to consider?
A: In summary, a school embarking on providing for two year olds for the first time should
consider the following:

business modelling: calculating how the offer will work financially for the school

the number of children who can be accommodated and any adaptations required;
think in groups of four children to accommodate ratio issues (i.e. one member of staff
required per four children)

the creation of the right environment for two year olds: what adjustments are required
and the costs of these

registration on the EYR (see above)

the staff that will need to be deployed/recruited

the delivery of the EYFS and meeting the welfare requirements

policy adjustments and new policies, including managing behaviour

working in partnership with other services to provide a holistic offer to the child and
their family

preparing for the two year old progress check and laising with any other provider who
has the child in their care

training needs and how the local authority can help
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Appendix 1 Registered Persons
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